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Dealership Refusing to give me my deposit

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Comments

  • bod1467 wrote: »
    You have a strange interpretation of contract law. I think most of the rest of us live in the real world.

    I am sure the OP will find out who is right and who is wrong when he comes to try and get his deposit back. Unfortunately for him. :(
    "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • bod1467
    bod1467 Posts: 15,214 Forumite
    I am sure the OP will find out who is right and who is wrong when he comes to try and get his deposit back. Unfortunately for him.

    Not at all. The OP may come across the dealer's belief that he is entitled to retain everything. (Or the dealer's bluff that he is). But if/when an LBA/court action is initiated (i.e. his bluff is called) the dealer will soon realise that he (thus you) is wrong. ;)
  • "There are not enough superlatives in the English language to describe a 'Princess Coronation' locomotive in full cry. We shall never see their like again". O S Nock
  • unholyangel
    unholyangel Posts: 16,866 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    edited 14 August 2014 at 12:15AM

    I see your 3 (not sure about the reliability of the first two, the last only says you may lose your deposit) and raise you:
    https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/284426/oft311.pdf

    Particularly these sections:
    4.3 Where customers cancel without any such justification, and the supplier
    suffers loss as a result, they cannot expect a full refund of all
    prepayments17. But a term under which they always lose everything they
    have paid in advance, regardless of the amount of any costs and losses caused by the cancellation, is at clear risk of being considered an unfair
    penalty – see Group 5.

    4.5 A way to improve the fairness of such a term is to ensure that it does not
    go beyond the ordinary legal position. Where cancellation is the fault of the
    consumer, the business is entitled to hold back from any refund of
    prepayments what is likely to be reasonably needed to cover his net costs
    or the net loss of profit resulting directly from the default.18 There is no
    entitlement to any sum that could reasonably be saved by, for example,
    finding another customer
    .

    And also:
    5.1 It is unfair to impose disproportionate sanctions for breach of contract. A
    requirement to pay more in compensation for a breach than a reasonable
    pre-estimate of the loss caused to the supplier is one kind of excessive
    penalty. Such a requirement will, in any case, normally be void to the
    extent that it amounts to a penalty under English common law. Other types
    of disproportionate sanction are considered below – Part III, Group 18(c).

    5.3 Other kinds of penal provisions which may be unfair are damages and costs
    clauses saying that the supplier can:
    • claim all his costs and expenses, not just his net costs
    • claim both his costs and his loss of profit where this would lead to
    being compensated twice over for the same loss
    • claim his legal costs on an 'indemnity' basis that is, all costs, not just
    costs reasonably incurred. The words 'indemnity' and 'indemnify' are
    also objectionable as legal jargon – see below, Part IV, Group 19(b).
    5.4 Potentially excessive penalties. A penalty that states a fixed or minimum
    sum, to be paid in all cases, will be open to challenge if the sum could be
    too high in some cases.

    5.6 Cancellation penalties and charges. A term which says, or is calculated to
    suggest, that inflated sums could be claimed if the consumer cancels the
    contract is likely to be challenged as unfair. For example, a penalty for
    wrongful cancellation that requires payment of the whole contract price, or
    a large part of it,20 is likely to be unfair if in some cases the supplier could
    reasonably reduce ('mitigate') his loss. If, for example, he could find
    another customer, the law would allow him to claim no more than the likely
    costs of doing so, together with any difference between the original price
    and the re-sale price.

    5.7 There is unlikely to be any objection to terms which fairly reflect, in plain
    language, the ordinary legal position – that is:
    • requiring the consumer to pay a stated sum which represents a real and
    fair pre-estimate of the costs or loss of profit the supplier is likely to
    suffer, or
    • stating simply that the consumer can be expected to pay reasonable
    compensation, or compensation according to law.
    Note, however, that a term which purports to reflect the law on damages is
    open to challenge if it is potentially misleading.

    However, supplier has a chance to mitigate his loss by postponing the contract till october.

    Also to point out if particulars havent been discussed, there may be no binding contract in place as of yet, in which case OP would be entitled to a full refund.
    You keep using that word. I do not think it means what you think it means - Inigo Montoya, The Princess Bride
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